Deming’s 14 Management Principles

1. Create consistency of purpose toward improvement of product and service.
Consistency of purpose requires that management be committed to long-term thinking instead of just changing strategies to make the quarterly report look good.  Management must believe that the company will be in business for a long time and then base their strategy on the long term.

2. Adopt the new philosophy. Refuse to accept defects.
Adopt the new philosophy means change.  The changes needed in industry require a complete new outlook on management and industry by raising the expectations of quality.
3. Cease dependence on mass inspection.
Inspection does not improve quality, nor guarantee quality. Inspection is too late. The quality, good or bad, is already in the product. Mass inspection is unreliable, costly, and ineffective.
4. End the practice of awarding business on the basis of price tag. Require suppliers to provide statistical evidence of quality.
The policy of forever trying to drive down the price of anything purchased, with no regard to quality and service, can drive good vendors and good service out of business.
5. Find problems. Continually and forever make improvements.
Improve constantly and forever the system of planning, production, and service, in order to improve every process and activity in the company, to improve quality and productivity, and thus constantly decrease costs. Institute innovation of product, service, and process. It is management’s job to work continually on the system (design, incoming supplies, maintenance, improvement of equipment, supervision, training, retraining, etc.)
6. Institute modern methods of training on the job.
Training is an investment. It is not an investment in land or equipment but in people. Even though it does not raise the net worth of your company, its results are well worth the investment. The investment is “minute in comparison with the potential advantage to the company of that worker understanding his job, i.e. knowing how to do it properly and to the company’s best advantage.
7. Give all employees the proper tools to do the job right.
8. Drive out fear so that everyone can work effectively.
Encourage effective two-way communication and other means to drive out fear throughout the organization so that everybody may work effectively and more productively for the company.
9. Break down barriers between departments; encourage different departments to work together on problem solving.
Break down barriers between departments and staff areas. People in different areas, such as Research, Design, Sales, Administration, and Production, must work in teams to tackle problems that may be encountered with products or service.
10. Eliminate numerical goals, posters, and slogans that ask for new levels of productivity without providing specific improvement methods.
Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
11. Eliminate work standards that prescribe numerical quotas; use statistical methods to continually improve quality and productivity.
A huge contributor to poor quality and waste is quotas. Everyone works at different speeds. There is no way of changing this. To be a good manager you must learn the system you are responsible for. It is then that you can increase productivity by making improvements to the system and not by making lofty and unattainable goals.
12. Remove all barriers to pride in workmanship.
Performance appraisals are an example of tampering with a stable system. It creates a Win-Lose environment instead of a Win-Win environment. People are unable to contribute what they’d like to contribute to their jobs; they have to get a good rating. People find out what is important for merit and do it.
13. Provide vigorous and ongoing education and retraining.
In respect to self-improvement, it is wise for anyone to bear in mind that there is no shortage of good people. Shortage exists at the high levels of knowledge, and this is true in every field.
14. Clearly demonstrate management commitment to the above 13 points every day.
Management must take on the fourteen points whole heartedly. This is not a project but a lifelong commitment needing continual improvement. They must explain the new philosophy to everyone in the company so that everybody as a team can work toward the common goal.